An Act Concerning Insurance Requirements Under The Common Interest Ownership Act.
Impact
If passed, HB 05035 would restore the insurance requirements that were in place before the enactment of Public Act 09-225. By doing so, it could alter the financial landscape for associations managing properties divided into units, possibly leading to lower insurance premiums and fewer administrative burdens regarding coverage. The relief from mandatory insurance could also incentivize new developments or adjustments in current building practices within these associations.
Summary
House Bill 05035, titled 'An Act Concerning Insurance Requirements Under The Common Interest Ownership Act', seeks to amend existing insurance requirements that affect property associations under Connecticut's Common Interest Ownership Act (CIOA). Specifically, the bill proposes the elimination of the requirement for associations to maintain insurance on buildings that are divided by vertical boundaries and contain units sharing common walls. This change aims to simplify insurance mandates for residential associations while potentially reducing overall costs.
Contention
The proposed bill has potential implications for both property owners and insurance companies. Some stakeholders might argue that removing insurance requirements, particularly in buildings with shared walls, could expose associations to greater financial risk, particularly in the event of damage or liability claims. There may be resistance from insurance firms that could see a decrease in business volume or revenues due to diminished coverage obligations. The bill's advocates, however, suggest that these requirements could be unnecessary and burdensome, especially when properties can be adequately insured by individual owners.
Additional_notes
Overall, HB 05035 is a move towards deregulation within the construction and property management sectors. The extent of its impact will largely depend on the perspectives of lawmakers regarding the balance between ensuring adequate protection for property associations and minimizing regulatory overhead.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.